A decisional modelling for supply chain management in network franchise: applied to franchise bakery networks

Pierre Fenies, Nikolay Tchernev () and Samuel Lagrange ()
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Pierre Fenies: CRCGM - Centre de Recherche Clermontois en Gestion et Management - UdA - Université d'Auvergne - Clermont-Ferrand I - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand
Nikolay Tchernev: CRCGM - Centre de Recherche Clermontois en Gestion et Management - UdA - Université d'Auvergne - Clermont-Ferrand I - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand

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Abstract: This paper proposes a modelling process to evaluate/optimize supply chain flows in a franchise network. We will study bakery networks composed of a supply chain producer and a retail outlet that sells the products made by the operator of the network in his own factories. Our modelling is a combination of two modelling processes: a first modelling reproduces the running supply chain through simulation and/or optimization (Comelli et al., 2008a); then data given by this model are used by a model (B) which reproduces the consequences of model (A) on the mixed franchise network thanks to a MILP optimisation based on the four management challenges. Then, for the opening of a new outlet, generated cash flow is analysed to choose between a company owned and a franchise. We show that the plural form is more efficient in generating cash flow for the operator. This form is, in fact, the best choice for an operator that wants to develop his network while balancing challenges such as growth, uniformity, local responsiveness and global adaptation. This kind of approach links together two research fields: a strategic one with the choice of the statutory form of the outlet in a mixed franchised network and a tactical and operational one that optimizes the cash flow in supply chains.

Keywords: franchise network; optimization; mix rate; SCM; financial flows evaluation (search for similar items in EconPapers)
Date: 2010-10-01
Note: View the original document on HAL open archive server: https://uca.hal.science/hal-02459412
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Published in Production Planning and Control, 2010

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